International Breweries Declare N70.03bn Loss in 2023
Kayode Tokede
As the Central Bank of Nigeria unified the foreign exchange market, International Breweries Plc in 2023 financial year declared N70.03 billion loss from N21.63 billion loss declared in 2022 financial year.
The marker of Castle Lite, Trophy, Beta Malt, Hero on the Nigerian Exchange Limited (NGX) also announced N97.27 billion loss before tax in 2023 financial year from N266.84 billion loss before tax reported in 2022.
Breweries company losses is on the backdrop of N55.98 billion net foreign exchange loss – unrealised posted in 2023 from N5.11 billion net foreign exchange loss – unrealised declared in 2022.
It also declared N14.4 billion net foreign exchange loss – realised in 2023 compared with N8.36billion net foreign exchange loss – realised reported in 2022.
Though the International Breweries grew its revenue by 19.18 per cent to N260.6 billion in 2023 from N218.65 billion in 2022, operating cost also contributed to the company’s worst performance in over 10 years.
Commenting on its 2022 financials, the Managing Director, International Breweries, Mr. Carlos Coutino in a statement said, “Our momentum can be attributed to our consistent execution of our commercial strategy, revenue management initiatives and the implementation of a deliberate route-to-market strategy alongside a technology-enhanced trade ecosystem, allowing us to serve our distributors and retailers better.”
Coutino had reiterated on the Company’s commitment to investing in its people and fostering a culture of long-term growth and value creation throughout the organisation with continued enhancements to its operating model.
The company in its audited result and accounts for 2023 financial year, however, declared N174.33 billion cost of sales, a growth of 20.16 per cent from N145.08 billion in 2022.
It also declared N29.72 billion finance cost in 2023, representing an increase of 178 per cent from N10.68 billion in 2022, driven by N24.7 billion interest expense on borrowings in the year under review from N5.38billion reported in the corresponding year.
The company was optimistic about the beer industry’s potential for growth and profitability and is confident in its ability to deliver superior long-term value in its quest to create a future with more cheers.
The company’ secretary, Marian Reginald-Ukwuoma in a filing on the Nigerian Exchange Limited (NGX) stated that shareholders would be asked to approve the conversion of an intercompany loan of $379.9 million to equity at the brewer’s extraordinary general meeting on April 9.
AB InBEV Nigeria is a subsidiary of Anheuser-Busch InBev (AB InBev) — a multinational drink and brewing giant based in Leuven, Belgium.
The company said the board would request that “the loan of $379.9 million granted to International Breweries Plc by AB InBEV Nigeria Holdings BV (‘the Shareholder Loan”) in respect of the repayment of the loan obtained by the Company (International Breweries) from Citibank Abu Dhabi be and is hereby approved in accordance with the terms and conditions presented by the Board of Directors“.
Shareholders would also consider, and if thought fit, approve authorisation of the directors to apply any convertible loan, shareholder loan or any other loan amount/facility due to any person from International Breweries as may be agreed between the person and the company towards payment for any shares subscribed for in the rights issue that has been approved by the shareholders.
International Breweries said the a will be subject to compliance with the applicable regulatory requirements.
Also, International Breweries said the board would also seek approvals for directors to have authorisation to approve, sign and/or execute all documents, appoint such parties and advisers as may be necessary to give effect to the proposed debt-to-equity, including without limitation, complying with the directives of any regulatory authority.
